The Industrial Revolution

1. The Industrial Revolution By: THE Mr. Woods

2. Essential Question: • How did we become the richest country in the world in roughly 100 years? • What factors led to the rise of the American Industrial Revolution from 1870 to 1900?

3. America’s boom in economy and industrial revolution can be contributed to • Population increase – immigrants • Natural resources – coal, steel, oil • Lazier fair capitalism – no rules or regulations in business growth • Rule of law –(patents) laws that would protect the rights of property

4. The Civil War stimulated mass-production techniques that were used after the war to make industrial goods • Interchangeable parts • Government gives easy access to natural resources • During reconstruction industrial goods like Iron, Steel and railroads were needed to rebuild the nation

5. America’s industrial revolution began as a wave of inventions • Cash registers, typewriters adding machines, made businesses more efficient • Alexander Graham Bell inspired by the telegraph revolutionized communication with the invention of the telephone • when he made the first call on March 10, 1876, to his assistant, Thomas Watson, he said, "Mr. Watson--come here--I want to see you

6. Thomas Edison was the greatest inventor of the 1800’s • Edison had more than 1,000 U.S. patents • His most influential invention was the 1st electric light bulb • Edison did not invent the first electric light but he found the first safe, affordable way to mass produce electric lights • His breakthrough lead to more productivity because factories could be running day and night

7. The Bessemer Process- developed around 1850 injected air into molten iron to remove impurities and made steel-a lighter, more flexible, rust resistant metal • Steel becomes much cheaper • Steel is used in railroads, farm equipment, canned goods • Engineers use steel to create skyscrapers and longer bridges (Brooklyn Bridge) – • The ability to buy steel at an affordable price allows industry to strive • Can be used to • Build railroads, factories, machines, tools etc • All for a lower price • So they can then sell MORE of it

8. With the rise in technology and machines there was ability to create products faster, cheaper and for more money • 5 men took advantage of this situation in 5 different fields • Cornelius Vanderbilt – Railroads • Andrew Carnegie – Steel • John D. Rockefeller – Oil • J.P. Morgan – Banking • Henry Ford – The assembly line (Automobiles) THE BIG 5

9. The railroad was America’s first “big business” Railroad construction grew in the years before the Civil War… …But, tracks were owned by different companies and were not standardized

10. During the Gilded Age, railroad construction boomed, led by tycoons like Cornelius Vanderbilt Large companies bought small railroads, standardized gauges and schedules, and pooled cars Cornelius Vanderbilt (3.47)

11. Railroad expansion led to a boom in the economy Railroads connected the East, South, and West and allowed for national trade and regional specialization The 1st transcontinental railroad was finished in 1869 Eastern railroads were connected to the West by 4 great trunk lines Railroads stimulated demand for coal, oil, iron, and steel

12. The iron and steel industries were dominated by Andrew Carnegie Carnegie was the first to convert his mills to the Bessemer process and made the highest quality steel at the lowest price Carnegie Steel Company produced more steel than all the steel factories in Great Britain combined Carnegie best represented the American dream by rising from poor a immigrant to richest man in the world

14. Companies like Carnegie Steel used vertical integration to buy companies in order to gain materials needed to make or deliver their products

15. Carnegie did not pay his employees very much and did not allow unions in his factories… …but he was a philanthropist who gave money to New York City libraries, colleges, and performing arts institutions Andrew Carnegie (2.11)

16. Industrialization led to a demand for oil for lubrication and kerosene lighting The oil industry during the Gilded Age was dominated John D. Rockefeller’s Standard Oil Company Rockefeller used ruthless tactics to buy out competing companies Standard Oil lowered costs and improved the quality of its oil products By 1879, Standard Oil sold 90% of the oil in America John D. Rockefeller (2.51)

17. CompanieslikeStandardOil used horizontal integration to buy similar companies to reduce competition

18. Industrialization led to a demand for financing so banking became a significant part of the Gilded Age American finance and banking was dominated by JP Morgan He was so influential that he bailed out the railroad industry when companies were in trouble He helped ease an economic depression during the Panic of 1907 JP Morgan (3.08)

19. Ford wanted to build a car that everyone could afford • At the time cars were a luxury item going for $800-$900 Ford found a way to bring the price down to $295 • This is made possible by the assembly line. • Each piece was standardized and assembled one piece at a time at one station at a time • Did not require skilled workers (means he can pay them less) • In the 1920’s Ford was producing more than 1 car per minute Henry Ford

23. More jobs are created in other industries. Car Industry Mass productions & Standardisationlead to increased car sales. More Standardised parts are needed The Cycle of Prosperity! Jobs in Diners, Motels & Gas Stations. Steel More Oil is used. Rubber Leather More people with jobs means that they can afford to buy a car! Glass More roads are built.

24. Car Production & Cycle of Prosperity Car production used up 20% of America's steel, 80% of her rubber, 75% of her plate glass and 65% of her leather. By the end of the 1920s American cars used seven billion gallons of petrol a year. This helped to create jobs in the oil industry and made the oil state of Texas rich.

25. Aerial view of the Rouge plant in 1930 In 1929, there were 81,000 men working in this one factory

26. Mass Production Assembly Lines Unskilled Workers Standardisation. Motor Car Task – write the meanings of the following terms Key Words. What do they mean?

27. Monopolists justified their wealth in a variety of ways The “Gospel of Wealth” argued that it is God's will for some men to gain great wealth so they could serve the public Social Darwinism taught that natural competition weeds out the weak and allows the strong to survive The government used laissez faire policies toward big business… …the lack of regulation allowed businesses to become very powerful and exploitive

28. Why do historians believe these men are ROBBER BARONS? Drove competitors out of business Robbed the nation of national resources Bribed public officials Raised prices Paid low wages and poor working conditions WHY CAPTAIN OF INDUSTRY? Worked hard and used new technology Financed and organized business efficiently Created jobs for millions of Americans Middle class growth Improved standard of living WHAT DO YOU THINK? ROBBER BARONS or CAPTAINS OF INDUSTRY